‘We can weather economic storm'

BUSINESS leaders believe Reading has the economic muscle to fight off a recession, a special Evening Post survey has found.

The snapshot of business confidence in the region contradicts the message coming from expert analysts who warn that the town will be powerless in the face of the global economic slowdown.

Our investigation found that the majority of business is thriving, with confidence high and many firms believing that Reading can ride any imminent storm.

Experts have warned that the town’s ability to bring in foreign investment, which has won it the title of the “engine room” of the UK economy and was considered its strength, may prove to be its economic Achilles heel.

The arrival of huge multinational companies such as Microsoft, Cisco and Worldcom has helped Reading reach an unrivalled economic high.

But there are fears that such heavy dependence on overseas companies leaves the town vulnerable to the effect of downturns in the US, European and Asian markets – sending Reading from boom to bust.

Professor Ian Gordon, economist for the South East and London at the London School of Economics, says Reading is not immune from any impending downturn.

He warns: “The threat of recession comes mainly from a turnaround in demand elsewhere, in North America and on the continent, with some direct effects.

“Whether a recession coming here is deep or shallow, there is nothing really that can be done locally to isolate the region from it.”